Transcript Chapter 13 PowerPoint slides

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Marketing:
Building
Customer
Relationships
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CHAPTER
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13
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McGraw-Hill/Irwin
Understanding Business, 8e
McHugh
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McHugh
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13-1
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Marketing
• The process of planning and executing
the conception, pricing, promotion, and
distribution of goods and services to
facilitate exchanges that satisfy
individual and organization objective.
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Evolution of Marketing-
p350
• Production Era - Up to early 1900s
• Selling Era - 1920s-1950s
• Marketing Concept Era - 1950s 1980s
• Customer
• Service
• Profit
• Customer Relationship Era - 1990s+
13-3
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Marketing Strategies in
Non-Profit Organizations
• Find a productive
board of trustees
(Directors)
• Make marketing
the focus; not
short-term sales
• Know your
mission and
review mission
strategy regularly
• Practice strategic
planning
• Carefully segment
target market
• Train & develop
volunteers for
long-term
• Be frugal- know
how to manage
finances
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Elements in the Marketing Mix
Place
Product
Marketing
Program
Buy at
Computers
‘R Us
Price
Promotion
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Marketing Process
1. Find Opportunity
2. Conduct Research
3. Identify Target
Market
4. Design Product
5. Product Testing
6. Brand Name, Design
& Price
7. Develop Distribution
System
8. Design Promotional
Program
9. Build Relationship
With Customer
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Where They Got
Their Names
Founder(s)
• Taco Bell
Glen Bell
• Days Inn
Cecil Day
• Bose Corp
Amar Bose
• Ty Inc.
Ty Warner
• Bristol-Myers
William Bristol
& John Myers
Source: World Features Syndicate
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Some Pricing Strategies
• Cost-Plus
• Skimming
• Going-Rate
• Loss-Leader
• Discount
• Psychological
Source: Perdue University, May 2005
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Other Things To Keep
In Mind With Price
• Payment Period
• Allowances
• Regular
• Seasonal
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Bundling
Trade Discounts
Price Flexibility
Credit Terms
• Price Differences
• Target Customers
• Geographic Areas
• Volume Discounts
and Wholesale
Pricing
• Cash and Early Pmt
Discount
Source: Perdue University, May 2005
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Place Decisions
• Direct Sales
• Reseller Sales
• Market Coverage
• Intensive
• Selective
• Exclusive
• Inventory Size
• Logistics
Source: Perdue University, May 2005
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Market Research Process
• Define the Question
• Collect Data
• Analyze the data
• Choose the best solution and
implement
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Sources for Marketing
Research Information
Secondary Data
• Government
Publications
• Commercial
Publications
• Magazines
• Newspapers
• Internal/General
Sources
Primary Data
• Surveys
• Focus groups
• Interviews
• Observation
• Online surveys
• Questionnaires
• Customer comments
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The Marketing Environment
Economic
Competitive
Technology
Customer
Social
Global
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Why Should You
Market To Women?
• Women control 80% of all household
spending.
• Women purchase 81% of all products and
services manufactured.
• 80% of all checks written are signed by
women.
• 85% of all automobile purchases are
influenced by women.
• In 2005, 4.7 Million women were selfemployed.
Source: St. Louis Small Business Monthly, May 2004
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Different Markets
• Consumer
• Niche
• One-to-One
• Business-toBusiness (B2B)
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Market Segmentation
• Target Marketing
• Geographic
• Demographic
• Psychographic
• Benefit
• Volume
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Influences on
Consumer Behavior
Culture
Reference
Learning
Group
Customer
Cognitive
Subculture
Dissonance
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Consumer Decision Making
Sociocultural
Marketing mix
•Product
•Reference groups
•Price
•Family
•Place
•Social class
•Promotion
•Culture
•Subculture
Psychological
•Perception
•Attitudes
•Learning
•Motivation
Decision-Making Process
•Problem Recognition
•Information Search
•Alternative evaluation
•Purchase decision
•Postpurchase evaluation
Situational
•Type of Purchase
•Social surroundings
•Physical surroundings
•Previous experience
• (cognitive dissonance)
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Planning For
More Business
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What do we do well-and not do well?
What are we really selling?
To whom do we sell?
How do we reach our target group?
How can we break through the clutter?
Source: Investor’s Business Daily, February 9, 2004
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Business-to-Consumer
E-Commerce as % of Sales
2000
2001
2002
2003
2004
2005
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Source: U.S. Census, May 18, 2006; http://home.earthlink.net/~lindberg_b/GECGrwth.htm, accessed August 5, 2006
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Business-to-Business (B2B)
1. Number
2. Size
3. Geographic
Concentration
4. Rational
5. Direct Sales
6. Personal Selling
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